>> steve: will you come back tomorrow? >> alisyn: okay. i will. >> brian: anybody else coming on? >> alisyn: crazy pet products. >> brian: fantastic. we don't need anything else. see you. bill: all right, fox news alert anmonday morning, should our nation's top intelligence community remain just that, top secret? a "washington post" investigation lasting two years is out today, laying out our complex spy network here in washington and abroad and there are some stunning revelations in that article, on a monday, good morning, everybody, i'm bill hemmer, you're live in "america's newsroom". >> thank you for havingny met. juliet: i'm juliet issuedy in for martha maccallum. the controversial network says since 9/11 the spy network has become entangled with 1200 government intelligence agencies, no hard data on how much it costs, no clear eye on

oversight. bill: mike at, you read the story, you know the intel community. what did that say to you? >> i think the first thing it said to me is that the united states government and the "the washington post" are really run by adolescents. it's the sort of thing you would expect from teenagers to identify the locations of u.s. intelligence facilities around the country, which certainly puts not only all of the intelligence communities' personnel at risk but if you read the article they describe facilities that are next to schools, next to walmarts, next to civilian facilities, that will surely be damaged and civilians killed if the intelligence community facilities are attacked. it's massively irresponsible. bill: you would argue that this intelligence should stay under thera i dar where it had been before, but does it tell you whether or not we're any safer or has this t* it -- has it just grown so large and so big there's

no one body or one person watching what aefrpb else is doing? >> sir, i think that the story itself is old news. for anyone who wants to -- >> bill: old news? >> it's old news, sir. the intelligence community is bloated, it is far too big, far too cumbersome, and the reality is america is at war. it lost more men in afghanistan last month than any time in the last nine years. intelligence does not win wars. killing the enemy wins wars. and you can expand the intelligence community until the cows come home and that does not protect america. killing the enemy until he decides the game is not worth the canneddably -- cappedel is what -- candle is what wins wars. bill: this stunned me, 854,000 people have top security clearance? >> it's extraordinary, sir, but you know, they have sub

contracted espionage, they've subcontracted intelligence work, all of the people in the private sector make more than civil servants so it's an extra oldnarily -- extraordinarily expensive and ineffective means of protecting america. bill: robert gates asked in the articleco we -- do we have more than we need. >> i think you probably have more than you need. intelligence is only worthwhile if you act on it, sir. if we had acted on the intelligence that was gathered, for example, by the cia in 199 # and 1999, bomb sawed is dead and everything that happened since '98 probably have not -- would not have happened in the same way. we have to have presidents who are willing to take intel esand kill the enemy with their supporters, and whatever it takes to, defend america. bill: many intel agencies are doing the same work, says "the washington post", wasting money and resores on redundancy, furthermore so many intelligence reports are published every year that are routinely ignored.

that comes back to the question what is safe and what is not necessary. as you stand there today, you think about the christmas body bomber in dough troit, the guy who tried to knock down times square two months back. are we less safe or thought? -- not. >> we have far less safe. the publication of an english language magazine clearly indicates there's a constituency in our country for that, we have a president who won't even identify the enemy. it's very hard to do intelligence work when your president won't tell you who the enemy is. they are islamist militants. bill: michael schoer is our lead guest, reacting to the article in the "washington post". there will be a lot more to go as we shall throughout the morning here. thank you for your time. >> thank you sir. juliet: possible setback in the gulf, the white house demanding bp step up monitoring of the well after they discovered a leak on the seafloor, the new

concern leaving the white house and b p at ads. bp wants to keep the cap closed, the government is in fave of pumping oil into tankers. the major concern now, if they're opening the cap, if they reopen it, it leaves open the possibility of making the oil spill even worse, and then of course harder to fix. phil keating in gulf port, mississippi. we talked about this yesterday. how serious is this seep and the methane that may be coming out of it? reporter error it's critically important and it is at the crux of what this integrity test is all about. down there under the cameras, on the seafloor, you can see the new tight fitting cap is very snug, you don't see the oil pouring out anymore, however, the issue that's puzzling all weekend long is the pressure readings under that cap. the pressure on saturday was 6745 p.s.p.i, today it's 677p.s.i. it's rising but not as fast as scientists expected so,

that leaves two possibilities, number one, after gush going the gulf the pressure from the reservoir has simply gone down or two, that the pressure of the cap on the wellhead that is forcing oil to seep into the seafloor or through the wellhead or through the well system at some other point. that's why admiral thad allen has that fleet of collection oil shipping on the surface so at any given moment they can go ahead and start collecting the oil on the ships and take the pressure off of the reservoir so it doesn't cause greater damage under the sea pwaed but in a stern letter written to bob dunny, admiral allen said when -- you are directed to marshal resources, quickly investigate and report findings to government in no more than four house, i direct to you write a -- direct a written procedure for opening the choke valve as quickly as possible without damaging the well that hydrocarbon seepage near the wellhead be

confirmed. they are confronting small tar balls that are coming daily with the high tide. juliet: phil keating, thank you for -- thank you for that report. bill we have new criticism from a government watchdog today that the white house pushed car companies gm and chrysler to close car dealerships across the country earlier than necessary and that may have backfired, only adding unemployment when the economy was in a tailspin. stuart varney has seen the report, the host of varney & company of fox business network. it concluded what? too quick, too rash? >> yes. it concluded the job of closing those dealershipses was rushed, that the proper criteria were not applied, and in fact we don't know what the criteria were, and the impact was enormous. you remember, bill, a year ago, it really was a gigantic impact all across the land when 2100 -- 2100gm and chrysler dealerships were closed very quickly, small towns all across the

country have felt the impact of this thing. now we've got the inspector general, his name is thiel barovsky, issuing a report saying the job was closing them was rushed and that there was not proper consideration of the economic impact of these closures, and that it may have resulted in the unnecessary loss of 100,000 jobs. that report out over the weekend. bill: treasury department strongly disagrees, i don't know if you saw this, too, they said we actually saved hundreds of thousands of american jobs. with that in mind, who are the big winners and who are the big losers in the bailout as we look back now? >> if you look at the big scheme of things, management was largely fired and certainly downsized, management lost its pensions, and we had the investors losing their shirts, taxpayers in the hole for tens of billions of dollars, and the dealers, clearly losing their shirts when they were closed prematurely. the winners probably were

the unions. they came out of this, certainly the retirees, union members who had retired, they were made whole, so in the great scheme of things, the only real winner from this bailout were the unions. bill: go back to the year 2008 and we debate this every day on our program, would chrysler be in business today, would gm be in business without the money? >> they would be in business but vastly downsized, but they were downsized, anyway. you sunk $80 billion in total of taxpayer money into these two enterprises. essentially, cries her was -- chrysler was kept alive and given to the italians, the fiat company, essentially, they were given, having been made whole and given to a foreign company, gm, still going, it's still in business, but it's cost us tens of billions of dollars. very different question to answer. they would be in business if they had not gotten government money. bill: stuart, thank you for that. ten minutes away, we have

varney & company at the fox business network. meantime, president obama will talk about the economy next hour, we expect the president to push for congress to extend those unemployment benefits, a contentious issue on the hill. as of late, the president expected to blast republicans for blocking extension efforts. that legitimateislation has been held up in the senate because of one big question, who pays for it. republicans have made that argument time and again. democrats say it's essential for the millions of unemployed americans, republicans say we cannot just keep adding to the decifit unchecked. more on this in a matter of minutes here, ten minutes past the hour anmonday. juliet. juliet: it's said that the government's power comes from the consent of the governed. do lawmakers on capitol hill have that skoepbt? shocking newel polls on how americans are feeling about the folks running our country. bill: these numbers coming at a time when nancy palestinian pell and robert gibbs had a public argument over whether or not the democrats can keep control of congress come november. the vice president now stepping in to settle the score, from his own perspective.

>> but he said that enough seats are in play in the house for the democrats to possibly lose the house. imperically true. how bad are the losses going to be bad for the democrats? >> i don't think the loss will be bad at all, i think we're going to shock the heck out of everybody. bill: is that the case? what would have to happen for the democrats to continue in power? and we'll flip it around, too, and find out the other way. back in a moment here on a monday morning.

juliet: welcome back. investigators are not ruling out sabotage in a deadly train collision that left 61 dead, it happened in india, the impact was so powerful the roof of one car was sent flying on to a highway overpass. the indian government raised the possibility of the crash was a terrorist act. two-months ago maoist rebels were blamed for a train rerailo derailment that killed 100 people. authorities say the death toll could rise. bill: stunning new numbers that reflect what america is thinking now, how much confidence the american people have in our government. rasmussen reports, they asked the question does the federal government have the consent of the governed. 23 percent say yes,

62 percent say no. what about that consent? bob cusack is managing editor from the hill. good morning to you. that is folks like you and me and everybody else watching this program, right? tkpwhrao exactly. everyone knows the electorate is angry, people are angry, but these numbers are a bit surprising because they show that democrats are losing the message as far as the government and what they're pushing. they pushed a stimulus program, but yet unemployment is still high, they pushed health care reform, got it passed, which is a big victory for president obama, but clearly, democrats have to do more on message in the coming months or it's going to be an ugly election for them. >> that is what november is all about. i want to show you fox news polling that we did about a week ago, 2010 vote for congress, express for obama, 33 percent, opposition to obama, 41 percent. here's another one, recent democratic control of the presidency and congress has been 50 percent say bad for the country, 36 percent say

it's been good for the country. now, we have seen over the past 20 years americans like divided government. how does that play out, bob? >> republicans have been talking in recent months about the need for checks and balances, and that's part of the reason why there was no checks and balances when george w. bush from most of his presidency, he had to work with the republican congress and people got tired of that and eventually democrats and especially independent voters flocked to democratic party in 2006 and 2008 and now democrats control both the white house and congress and certainly republicans will make the argument we need some more oversight of the obama administration and this will be very interesting to see, how will republicans, do they run against nancy pelosi and harry reid or against obama. obama, in some ways his personality is very popular, his policy, though, polls show, have dipped. bill: what is your sense from the republicans, then? is nancy pelosi in the crosshairs or is president obama? >> i think that nancy pelosi

is definitely going to be in the crosshairs, but they've run a lot of special elections and highlighted nancy pelosi and it hasn't worked, so i think they're going to have to focus on obama's policies, make it a referendum on them. the good news for democrats is republicans aren't extremely popular, either, and that's where it's going to come in as party strategists, fundraising is all going to northbound the mix, and some of these house races, and whether the house flips back to the republicans, could come down to a dozen races that are decided by point each. bill: it's your observation that the earlier strategy about running as nancy -- running against nancy pelosi is change something. >> i think so. ' aves have tried that for the past couple of years, it didn't work in the jack murtha race early they are year and i think they've got to focus on the president's policies and democrats are going to be pointing to george w. bush, a return to george w. bush, or continuing what they claim is progress. the democrats can't say they've progressed too much

because unemployment is so high. it's a tricky fine line that democrats have to cross. bill: the questions over stimulus and health care reform, all this is debated as well. when it comes to health care reform n. that original survey from rasmussen reports of those who said the government is not acting on behalf of the people, only 15 percent of seniors in that senior thought the government was acting on their behalf. seniors vote, it could be a big deal come november. i'll give you the last word bob. >> it definitely will be huge. aarp did support the health care reform bill, however, that bill did cost medicare $500 billion in cuts and that's what republicans will be stressing this fall. bill: 30 minutes from now, tkr-rbgs marc siegl with health care and what's happening with your choice on a doctor. we'll get to that in about 30 minutes. bob, thank you for your time. >> you got it. juliet: a birthday party massacre, 17 people shot and killed after the party is announced on facebook. we're going to tell you what happened and who police

believe may be responsible. also breaking news out of afghanistan, our fox news crew, embedded with the military, getting caught in a insidey firefight with taliban forces. the incredible video in a live report from afghanistan straight ahead. stay with us.

bill: more stunning violence in mexico, a massacre there, gunmen storming a party and killing 17 and wounding dozens of others, members of a drug cartel may be responsible for the shooting that took place in toorryon, that group armed with rifles walked in unannounced and opened fire. some of the victims were young women, torryeon, 250 miles due south of the texas border.

juliet: police now saying there is evidence a southern california teenager reported missing four days ago may have been abducted. seventeen-year-old norah lopez from moreno valley, california disappeared while walking home thursday. we go to moreno valley with the latest. give us some background, where did police say norma was coming home from when she disappeared? >> reporter: well, juliet, good morning. first of all i guess we should explain where moreno valley is, a community 60 miles southeast of los angeles near riverside. she attended summer classes at valley view high school in moreno valley, attending classes between 8:00 a.m. and 10:00 a.m. she was supposed to meet up with her sister later that morning, so at this point, investigators do not believe that this is a case of a runaway, they feel that in fact she has been ab deducted and so far, juliet, very few clues to go on. juliet: was there anything abnormal about the route she was taking home? >> reporter: well,

ordinarily, she would cut through a field that she used going to and from school. they called it a shortcut for her, to expedite things, and she normally would take that route and in fact, investigators did find some of her belongings in that field. they also say that there were signs of a struggle. not very good news indeed where these kinds of cases were involved. that's what they have found so far in this case but not much more. jewel kwrao*ul that's probably why they're saying this probably looks like it's a kidnapping? >> reporter: that's what they're saying at this point. we should also mention there has been an intense search for norma lopez throughout the entire weekend with volunteers joining forces with law enforcement, staging at the high school to try to get as many people involved in the seven as possible but so far, no luck. juliet: rick, thank you for that, rick lazano, for news in los angeles.

bill you know what investigators say, time is of the eevens. -- essence. juliet: it's never good if they say it looks like there was a struggle. bill: all right. he is arguably the most mysterious man running for office this november, alvin green is out of south carolina, doesn't have a campaign staff, doesn't have a real campaign headquarters, doesn't even have a job we're told. now we finally get to hear from alvin green, candidate, u.s. senate. do not miss this. juliet: cannot wait. and why vice president joe biden is so definitively confident about the democrats' chances this november. >> this is july, the election is not until november, and i think we're going to have to firmly make our case, i think we can make it, and especially in the context of who's going to be opposing this, compared to the alternative, i think we're going to get a fair amount of credit by november and i think we're going to define it. juliet: want to know what is generating the buzz?

click on the most read tab on the home page to see what's hot and what's not.

bill: it's 930 time here in new york, some of the top stories, bp says so far dealing with the cost of the gulf oil spill is just under $4 billion, the company says it's paid $207 million so far so settle claims for damages. there's a newspaper out of london reporting that bp may have to sell a gas -- gas station and some of its assets to handle the overall cost. leslie stphao*eves, losing his appeal, may have to serve three days in jail. he tried to get the conviction overturned, while two years ago, he had federal tax evasion charges. check out wall street on a monday, we are about to have the sound of money kicking off where we expect an uptick at the open, after friday where we saw massive

losses in the afternoon, the dow 30 down almost 270 points, this on concerns about weakness on earnings. we'll see where stocks go today, opening up here in a matter of seconds on "america's newsroom". nine hundred thirty type time, here's juliet. juliet: thank you very much, bill. vice president joe biden promising a november shocker by democrats. the mid-term elections, right around the corner, the battle lines already being drawn, causing a few concerns for the party in charge in washington, and going even further down the road, the white house not looking so great. in a poll released by public policy polling, a liberal leaning firm, president obama would lose to mitt romney, mike huckabee and newt gingrich if the election were today and in a head to head with sarah palin he would tie, but vice president joe biden says no worries. >> i am absolute absolutely cont when people take a look at what has happened since we've taken office in november and comparing it to

the alternative, we're going to be in great shape. here's the deal. what robert gibbs also said was what he believes, what i believe, what the president believes, we're going to win the house and we're going to win the senate. we're not going to lose any one of those bodies. >> bob beckel is with usa today, andrea santoras is a conservative columnist. great to have you both here, you're two of my favorites. >> so are you. juliet: a curious outlook there, bob. >> first of all, i don't know what people expected bidden to say. after robert tkpw*eurbs said there was no doubt there was room for the republicans to take the seats in the house and a firestorm broke out in the rangings -- rank, what did they expect biden to do, say gibbs is right? of course he's not going to say that, of course he's got to say that. having said that, having looked at this, and i follow this every day, i think first of all the senate is not going to go republican, it's a very long shot and secondly, right now if i had to put even money on it,

when voters focus in the fall, i think the democrats have an even better chance to win the house back. juliet: democrats control the senate 59-41, that means republicans would have to gain ten seats, republicans would have to win virtually every one of these close competitive places to retake the senate and not lose their own spots. that seems like pie in the sky, don't you think? >> look, up until a while ago the senate seemed out of reach but looking at california and wisconsin, i think there's actually a chance that republicans could take the senate. the house has never flipped without the senate. and so this might be the first time that if the house does flip and the senate doesn't, that ever happens in history, but i would say the republicans are going after 100 seats, they need 39 to take the house and looking at the numbers they have a good shot at the house. the senate is within reach but the funniest thing about this, they send joe biden, that's the most credible person you guys got, you and

your buddy joe biden going out there to do his damage control? wow! juliet: with the party second in command, making such a denyive tiff prediction -- denyive tiff direction, does he take a risk? >> if he's wrong it doesn't matter and if he decides to take it the other way he's in big trouble. this is a semantics argument. joe biden does what he had to do and andrea, i'm impresswood your historical knowledge of campaigns and politics, but when the senate has gone republican and house has not gone republican, so it is true that in a big wave elections it's more than likely both houses split but this is not going to be a big wave election. there's no indication right now simply because the republicans have hired negative -- higher negatives than the democrats. >> well, no, they don't, not anymore. >> yes they do. >> no, they don't. it's showing that republicans are gaining, and i would point to a recent fox news poll that showed that 41 percent of voters are going out there to vote against barack obama.

so while i agree with you bob that republicans have message trouble, they cannot seem to get a cogent message out there and they're not making huge gains, you and i have debated this and discussed this before, republicans should be polling much, much higher but there's such a disgust with both parties that that's really holding them back and republicans have got to get a message pulled together to really clean house. but i would say juliet and bob, if republicans don't take either one, this is not reason to panic, because i'll tell you what, democrats will just blame republicans if they take the house, anyway. sometimes i wake up and hope they don't take either one because we can have a clean sweep in 2012. >> that's a credible statement. that's a credible statement. yeah. i don't really think you believe that. juliet: law makers and analysts say, they kind of point to the unease of the one party government. as a major reason that voters are going to go for the republicans. is this more sailent than let's say an unease with career politicians or the

long term incumbents? >> well, you know, there is a lot of truth to a -- there is a percentage of voters in the country that consciously go in to vote for separation of powers and that may be 5 percent to 7 percent and those will be at the polls, and so that weighs again the democrats. i'm going out on a limb here myself and saying we're going to hold on to the house. i wouldn't be surprised if we didn't. but the point is right now you've got to look at the mood of the country. in 20 06, and in 1994, where there were wave electricals, where the house went 94' are, 2006 democrat, you could see major shifts in the leak toreat taking place. you don't see that this time around. you do see it in parts of the country but not across the board. juliet: andrea, bob, i'll have you comment on this, what do you think robert gibbs after he sees joe biden doing this? >> iing -- i think he's doing average cal. i think robert gibbs was actually being honest for a snapshot in time, but look,

i think democrats have a real problem here, i think that barack obama is pulling so -- poll sog low now he can't even go out and help democrats. like i said in california and wisconsin, it's giving republicans hope that we could take the senate. so if barack obama can't do anything for his candidates except to raise money because he's so unpopular. jewel jal you think robert gibbs is frustrated with joe bid then. >> i don't think he's frustrated. i think it was a discussion that everybody had, what are you going to do to undo the problem that robert found himself in. if he had to do it over again, there's no question he wouldn't have used those words, or at least said no doubt we're going to win the house. i think it's a coordinated evident. i'm not surprised at all. i think rob -- robert gibbs is thankle to joe biden. >> we like that scoop and we also like your hair cut. >> thank you! bill: very civil today, huh? >> i kind of don't like it! bill: thank you bob, a*bdra.

he is the u.s. senate candidate who came out of nowhere to win south carolina's primary. the democratic primary about a month ago. and we've really not heard much from him on the campaign trail until now, alvin greene is his name, speaking before a packed house at a monthly meeting of the naacp, several hundred people showed up. here is what greene said as to why he is the best choice come november. >> i'm the best candidate in the united states senate race here in south carolina. i am also the best candidate -- i am also the best choice for the image award next year! [laughter] >> let's get south carolina work from alvin, south carolina to greenville, south carolina. bill: the democratic party has called on greene to step aside after it was revealed the day after the election, an election he won, without even campaigning or having even a campaign headquarters, is facing a felony of obscenity charge that goes back a month.

greene has refused to withdrawal, he's facing incumbent jim demint in november's elections. that will be one to watch. juliet: for a few to watch, actually! bill: we'll bring bob and andrea to duke it out then. brutal heat causing big problems for folks in new york city. they held a triathlon on sunday and man was it hot! twelve people went to the hospital. i expected more, actually, after given the heat index. a man collapsed just before the finish line. most of the racers suffered heat stroke -- who suffered heat stroke and dehydration -- janice dean has more from the eve. it's not just the northeast. it's everywhere. >> in the elevator, i had a guy that almost went mel gibson on me, but not quite, it was like when is this heat going to end and we're going to potentially see this heat continue into the fall months, and we're going

to talk about why in a minute. let's take a look at today's highs. i know, it's not just the heat, juliet, it's the humidity, which makes it oppressive, which means people can't go outside. people at the beach, they didn't even get relief at the beach. ninety-five in kansas city, 98 dallas, hundreds across the southwest, it's relentless and everyone is getting it. because we have so much humidity in the atmosphere, moisture in the atmosphere, your body can't handle the heat when you're outdoors, so it's going to feel worse, especially across the midwest in towards the southeast, even towards the northeast again today and it's going to continue all week long. heat advisories, where we are relentless with the heat across much of the central plains, we're going to feel heat indices, from 105 degrees up to 120 degrees, feel-like temperatures. not only the heat are we dealing with but the potential of severe weather. we had vary from michigan, we had 450 reports of severe weather across portions of

the midwest, this is out of cal ma zoo where we had winds in excess of 60 miles an hour, trees uprooted, out outages, and reports of tornadoes in the state of michigan. so two stories that we are following, the threat for severe weather again today, guys, and the heat, it just continues. it's -- >> bill: it's been here for weeks now. some people are talking about the jetstream moving north, as far north as 500 miles, which would move the heat from north carolina into places like new york. is that legit? >> it's far north and usually the jetstream give us relief from the summertime heat but because it has been stationed well up north toward the canadian border we continue to see all of this heat just sit and stay for long durations of time. bill: it's true, they weren't making it up over the weekend. >> it's true. it all has to do with the wind patterns, the sea surface and ocean temperature, off the charts. bill: okay, thank you.

juliet: a portable fan and a couple of ice. bill: and a lot of water. juliet: exactly. with the new health care law set to take effect, new word that insurance companies are pushing plans that may not exactly make you happy at the doctor's office, what you need to know, what your family needs to know. bill: the shootout on a california freeway, why an armed man wearing a bullet-proof vest, opened fire on police. what happened there.

juliet: welcome back. gun battle on a california freeway with a suspect wearing a bullet-proof vest. check out the aftermath. police say 45 world byron williams, in the white pickup, opened fire on the highway patrol during a traffic stop on interstate 58o. it happened in oakland, california. officers fired back, bullets fly back and forth for several minutes before the suspect was eventually shot several times. in addition to the bullet-proof vest, police say williams had three guns. he is in stable condition, and is expected to recover. williams' mother said he was frustrated about not being able to get a job and was angry at, quote, left wing politicians. bill: news on health care this morning, we're hearing some of the country's biggest insurers are promoting plans aimed at reducing cost for small

businesses and it sounds good, except that some of these plans provide employees with fewer choice, especially when it comes to doctors. let's ask a doctor, tkr-rbgs marc siegl, steb of the fox news medical a teal. -- a team. the report says what with regard to how it affects the american family? >> it's going to affect the average american in a very big way. small businesses, large businesses, they're getting a push to cover more an more people. this is the health care reform bill coming into effect in advance of 2014. we're seeing the impact here. families are going to have less choices. they were told they're going to have more choices, they're going to have less. this is starting to look like the 1990s again. bill: let's get to the 1990s but it's the insurers, i indiana, they're the ones who choose the doctors from which i can choose a doctor. >> bill, here's the thing. insurers know they're going to have to try to keep premiums down, they're being told by the draft regulations for the reform

bill that they cannot increase deductibles so how are you going to get premiums down if you can't increase deductibles and have patients pay more? the only other way you can do it is to cut fees to doctors to offer less services. that's what we're actually seeing here. the way they do it is they allow you to choose less doctors, in other words, they put less doctors on your panel, less hospitals. bill: how does that save money in a plan? >> you're still paying the overall bill because there's no out of network cost. tpherz you don't have a doctor who says i'll play ball with you but you have to pay my fee. you vet lowers fees, you capitate and get payment out to doctors and hospitals. you're in control. the insurance company dictates the price, and they say dock, you want to -- doc, you want to play ball, this is what you get. here's in the problems, in the 1990s patients rebelled, they wanted more choices. bill: this was put into effect in the 1990? >> pretty similar. you had gate keeper where

you went toit primary doctor and he had limited choys of what he could offer you, only a few doctors to choose from. same thing now, you're going to have less choices. people will rebel. they're used to a certain level of care him what happened in the 1990s, people said no, i got to be able to choose whether i get that cat scan or -- >> how did they change it? >> they raised praoepls uls and offered you more options and that's what people want. when the president said your health care is going to change, he said that in advance of the bill, these are -- >> bill: he said not only do you like your doctor, you keep your doctor but if you like your options, you keep your options and people actually said you have more option. it's no it's not playing out here? >> look, small businesses are trying to save money, large businesses are trying to save money, the individual who is being forced to have health care and doesn't want it is trying to save money. more mcdonald's, less gourmet restaurants. bill: what is your view, as a doctor with all the patients coming to see you

seven days a week, sometime, what's the better? >> here's my view, a two tier health care system. you're going to -- you're going to have this generic view, if you want more, pay for it, if you want better doctors, you're going to have to pay for it. i don't like that, what i think we should have is higher deductible insurances where patients pay out of pocket to begin with. otherwise get this insurance which is easy to overa. bill: a higher deductible that goes from 500 to 1000 -- >> 500 to 1000, where health savings accounts where you can get a tax deduction, you want to go to the doctor for a common cold, you pay out of your savings account. obama care, it's easy to go to the doctor but you don't choose the doctor. bill: we'll see if we're pushed back into that era, 18 years ago. >> 1990s. bill: thank you doctor, from the medical a team. juliet: thank you very much, bill. good to see you doc. we're bringing you video from the intense fighting in

kandahar. as soon as we get this, we're going to bring it to you in a live report from afghanistan. bill. bill: also, it is the moment we've been waiting for, the corruption trial of impeached illinois governor rod blagojevich about to get rather interesting. it's been pretty interesting so far i'd say. blago himself is set to take the stand. juliet: have you watched him on celebrity apprentice you know it's going to be a very interesting trial. it could change the way we fly. check that out. we're going to show what you some are calling an aviation breakthrough, coming up next. ??????????????

bill: our nation's bridges are not safe, that's according to a new report from the transportation department, saying that more than 150,000 bridges are structurally deficient. you remember this,

august 1st, 2007, 3 years ago, almost, the bridge collapsed in minneapolis, minnesota, one bright spot in this report, it says that many of the bridges that need work are getting repaired so the numbers, they expect to improve sometime soon. juliet: so how would you like to fly for norco fro new york to los angeles, new york to los angeles, in about 45 minutes or so? we could be seeing the beginning of a reality today. this is the x51 wave rider, a plane that travels five times the speed of sound. anita vogel is live in palmdale, california with more. this thing sounds like a dream. i'll be out there every weekend! i'm ready to go now. reporter hey juliet. everybody knows the space shuttle program is retiring next year so the for example at boeing and pratt whitney put their heads together and they believe the vehicles behind me which they came up

with could be the next generation work horses to get us into space. >> it's being called the most exciting milestone in aviation since jets replaced propellorrers, the hyper sonic aircraft can travel at five times the speed of sound thanks to technology that allows us to use oxygen in the atmosphere to burn fuel rather than carrying massive oxygen tanks. >> the ult ultimate vision is access to space, taking pay load into space at a much more affordable cost. >> in this test flight the x51 traveled 170 miles in 200 seconds, opening the door to all sorts of military and commercial applications. >> that would get you from l.a. to work in about 44 minutes if you could fly that duration. >> without the need to carry its own oxygen, this so-called scram jet engine can go faster and further while burning less fuel, the first person to know it works, the b52 pilot who launched it.

>> we're looking out the window and you see nothing out of nowhere. this rocket straoerpls by with a really bright plume. >> we saw the vehicle, it was on profile, and people started screaming. it was really exciting in the control room. >> this is only one of four planned tests. the folks here hope to go further, faster and longer next time. one more step on the road to high speed military missions, commercial tpwhraoeuts, and of course, access to space. and you know it's really no wonder that the mood here, people are comparing the mood here to the mood of the apollo missions during the 196 os. and how about that l.a. to new york in 45 minutes? i know you'll be up on that, juliet. juliet: visit my dad, it would be wonderful! thank you very much, anita, appreciate it. bill: 45 minutes. juliet: how cool would that be? bin laden bill it is rough going in the southern part of afghanistan, our fox news crew captured this video of a firefight only moments

ago. watch here. scenes like these are tphraeug out more often as -- often as that war ticks up greater now. conor powell is live, pinned up with that group in kandahar. he joins us and we'll find out how that firefight turned out. where maybe we can find some self-confidence for you. ya jackwagon! tissue?

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and dozens more sizzling summer recipes, visit campbellskitchen.com. bill: breaking news here in america's newsroom, before the break we showed you videotape into the fox news channel, u.s. forces in kandahar making a move, pushing furs ining furth part of town they haven't gone into in sometime, running into a nasty firefighter and our fox news crews imbedded with the troops when they started taking fire from three sides, taliban forces, surrounding them. watch this video, as the firefight plays out. that wall, on the wall, this wall!

bill: it continued from there. connor powell is now streaming live in kandahar. southern afghanistan, what happened? >> reporter: well, bill, we have been here, fox news cameraman rich and i have been in zahri district, kandahar, literally the first place of the taliban, the area where mullah omar is from, the heart of the taliban insurgency and you saw in the video, it is a very very, fierce fight and we are here with the 2nd brigade in 101st and they are responsible for this part of kandahar, and we went with them this morning trying to push into the district of zahri to take on the taliban, but as we have heard the past few days, there has been gunfire, and explosions, surrounding the entire area and when we pushed out we weren't out even 100 meters before the taliban began to open the -- throughout the

course of this very, have fierce and intense battle. and, u.s. and afghan joint patrols, 400 meters outside of the base, before the battle was fully erupted, and, after about 30 minutes or so of intense fighting, the battle died down, we finally moved back and, now, 400 meters, doesn't sound like much, to move out of the u.s. base, but, according to commanders, bill, that this is farthest they've gotten out of that one spot in the last two or so months. bill: remarkable, connor powell in the heat of all of it that's sun starts to set there in the afghan desert. connor powell, stay safe, i know you will, with your photographer. from the deserts of afghanistan. there is a shocking new report on american intelligence-gathering. the "washington post" with a disturbing study on the intel community. expected to say a hefty chunk of the leg work is done by private contractors and that is the beginning going back to 9/11 extensive story and reaction

now, brand new hour, i'm bill hemmer, big welcome to juliett. juliet: thanks for having me. i'm juliet huddy in for martha maccallum. it has been in the works for two years and has an on-line database of contractors and what they are working on. bill:s as you might frn mimagin intel brass not happy about it. catherine herridge joins you, what is they're. >> reporter: the lead reporter on the story, dana priest was on "the today show" and part of the goal was to bring together information to show the sides of the -- size of the intelligence community and how unwield is it has become since 9/11. >> that is the crux of the matter. there has been advance, a lot of advance in intelligence-sharing among different agencies but, at the same time the system has grown so large, many managers of it, don't each know what all is out there, and as the consequence cannot share throughout the community, because, they don't have a sense

of how large that has become. >> reporter: one of the things she discovered in her report is how little she says our own government knows about itself in some of these operations. bill: and the branch of government, expanded exponentially, trying to keep us safe since 9/11 and the intel community is reacting how on this, catherine. >> reporter: i spoke with someone on friday en advance of the series being published and they said in their opinion, the database is a targeting document and brought together information that is in the public domain, into sort of a one-stop shopping situation. and, so groups who want to do harm to the united states, or may want to use the information against our own government, it was all there, in one place, where it could be uncovered and a short time ago, we got a statement from the acting director of the director of -- the office of the director of national intelligence and it reads in part: we accept that we operate in an

environment that limits the amount of information we can share however the fact is men and women of the intelligence community improved our operations, thwarted attacks and are ateaching untold successes, every day and we can expect more reaction. bill: i agree and with regard to the reaction, is there anything in the article, as much as the intel community wants to keep it quiet, is there anything in that that can make us better. >> reporter: well, there are elements that could certainly make it better. the argument is whether these are redundancies and are unnecessary or whether one could argue they are extra layers of security. they are back stops, so if one layer of the intelligence fails there is a second or third layer in place that can hopefully prevent an attack. i think it is important to note the end of last week, the office of the director of national intelligence felt that the database was so worrisome that they sent out a memo to their contractors, warning that it could be an attractive target for a number of organizations. and, it reads in part: foreign intelligence service,

terrorist organizations and criminal elements will have potential interest in the kind of information, specifically we recommend the companies affected by the publication and web site assess and take steps to mitigate risks to their workforce, facility and mission. so, in other words, what they are saying to people is, you have to keep your eyes and ears open once it is publish and lower the threshold for reporting what you think are unusual or anomalous events that relate to your operations, and that is a pretty significant memo. bill: thank you for that, we'll watch for reaction throughout the next hour on "america's newsroom." juliet: new polls show president obama's popularity sunk to a new low and now there are reports of growing feelings among congressional democrats that the president's agenda has weakened their re-election this year as well as hurt president obama's re-election hopes in 2010. carl cameron joining us live from our d.c. bureau.

carl, democrats are worried about their midterm re-election and that is not the case for the president, though, is that correct. >> reporter: no, the president wants to keep his democratic majority in the house and senate and the problem is, it is very much in jeopardy, in the house there are easily 60 competitive seats and for republicans, to pick up the majority, only need 39 and right now, it looks like republicans could reasonably expect to win 30 to 35 and they are knocking on the door there, and the senate the magic number is ten and republicans can get to 5 or 6. the latest polls for democrats, are quite threatening. and, there is concern, with democrats and the president's agenda put them there, voting for health care, in a lot of cases put them into -- at political risk and what is even more an illustration of the president's political problem is his own head-to-head polls against potential republicans and public policy polling which is a democratic affiliated polling group did a survey last week that put the president against four top republicans and in each case he's tied, historically, virtually unpress

dent -- unprecedented for a president to be in a tie situation, and, mitt romney a tie and mike huckabee, having won the caucuses, federal conservative, a tie and newt gingrich, tied with president obama and sarah palin, the sort of cultural warrior, tea party candidate also tied with president obama in potential head-to-heads and put that in contrast to the situation with the midterms and it is an astonishingly weak position for democrats. juliet: you know, two years is a lot of time. we'll see what happens, carl, thanks for that report, appreciate it. >> reporter: you've got it. bill: in the meantime, chicago, we go, right? the corruption trial of rod blagojevich is set for his defense. the former illinois governor expected to take the stand, and, that will be... juliet: interesting? bill: i'd say, he's accused of trying to sell the former senate seat of president obama or trade it in for a higher paying job.

mike tobin is live at the courthouse in chicago. and first off, the governor's brother, robert testifies first, what is he expected to say? >> reporter: right. well, you know, you can expect robert to put a lot of energy into saving his own bacon and he's a defendant in the case as well and he'll get up on the stand and say he was in tennessee attending to his family and minding his own business and got an emergency call from his brother to show up in chicago and help raise funds and he was only there for 120 days and was swept up in his brother's mess and incidentally there is not a lot of love between the two and you rarely see them speak as they come and go from the dirksen federal building here. bill: when blagojevich takes the stand, when will that be and has anyone explained why he is doing this? a lot of times lawyers say keep your mouth shut until the very end. >> reporter: it will be later this week. you can never accurately gauge how long the witnesses will take and when they will get on the stand but all the trial-watchers are keeping a close eye on this to see if he'll step on the

third rail. and, by that i mean if he gets up and says the same thing he had been saying in front of the tv cameras every day, he was only working in the best interest of the people of illinois. if he does that, it will be immediately countered by the mountains of testimony it takes, that show he was in the frenzy of raising funds and trying to hitch his cart to president obama's wagon and when you consider the fact there was testimony he worked two hours a day, aides couldn't find him and made make decisions of the state because they couldn't track down the governor and if he testifies to that effect, trial-watchers believe the jury will not believe the defendant, if he tells them the sun rises in the east and they believe his best opportunity is to get up on the witness stand and say that he was an inept governor and choose the words of his own defense attorney he's an idiot and took a lot of bad advice and that got him into the situation. bill: if and when it happens, that will be the place to be, e mike tobin live in chicago. juliet: that might be something he was doing while he was on

celebrity apprentice and he looked like an idiot when he was on celebrity apprentice, he takes from the rich and gives to the poor but in the case the rich aren't... well, the rich aren't... i don't know, what they aren't, because the prompter changed. sorry, we'll meet the man dubbed a real life robin hood, just ahead. bill: turning the tables over the fight over arizona's immigration law and critics learn why uncle sam is not going after the sanctuary cities in america, democratic congressman luis gutierrez is on that in three minutes. juliet: released from a scott prison and, given three months to live, and now the lockerbie bomber is still alive. now, senators are calling for an investigation. >> a blood money deal is a blood money deal and we must, must hold people accountable.

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juliet: calls for the state department to investigate the release of the libyan bomber, the lockerbie bomber, abdel baset al- megrahi had three months to live, dying of terminal cancer and 11 months later he's still alive and several senators now think his release was part of a $900 million deal brokered by bp and the british government to secure

an oil drilling contract off the shores of libya. >> no matter how powerful the corporation, how important the foreign governments, a blood money deal is a blood money deal. and we must, must hold people accountable. it is disgusting that we were falsely told that abdel baset al- megrahi had only three months to live and was being let go for so-called compassionate reasons. juliet: he's now being shuffled between excluded intensive care units, and that of course, according to the libyan government, just a few weeks ago, his doctor admitted he was pressured to give a false diagnosis and that abdel baset al- megrahi could live more another decade. bill: we're ten days away, in ten days arizona's immigration law goes into effect and with the white house in the meantime as you know taking arizona, actually the department of justice is taking arizona to court over the law and the

critics are questioning why the feds don't go after sanctuary cities, areas of the country that don't report illegals to the federal government. will it change? let's ask democratic congressman luis gutierrez, the chairman of the congressional hispanic task force and immigration reform and the judiciary subcommittee on immigration, welcome back to "america's newsroom" from your home town there in chicago. >> thank you. bill: you say this is basically a made-up issue. make sure i have your words right here, a made-up issue of conservative minds, is that what you said? >> well, which issue, exactly, bill. bill: the issue about sanctuary cities and... >> sanctuary cities, look, chicago, chicago, i guess, by definition, would be a sanctuary city. that is we believe and chicago does the relationship between the population, and the police, is something that is very important and sacrosanct and we shouldn't jeopardize by turning police officers into immigration agents and it doesn't mean the chicago police department gives

immigrants a pass. when they commit a crime, no. know, we prosecute them to the fullest stenextent of the law, don't on the street go about the business of being immigration agents. we believe that that relationship between the people and police is very important. bill: the policy there, and it goes back to april 7, 2008, the cook county sheriffs department shall not make inquiries into immigration. you know, the law with arizona will go in effect in ten days, that they don't make inquiries into immigration, either, unless there is a lawful stop for another crime. so, there is a big difference between what is happening in arizona, on the 29th of july, and what is happening in your home town, of chicago, and your home town of cook county. going back to april, two years ago. >> sure. and what the federal government said is the federal government should enforce immigration policy and thinks that the --

arizona's overstepped its boundaries, and, in creating immigration policy and that it is the... it is the primary responsibility and the constitutional responsibility of the federal government to enforce the law but -- >> what is... reflection on the law that was passed in 1996. that goes back 14 years ago. you know about that law, right? the illegal immigration reform, immigrant responsibility act of 1996? >> of -- i do remember that. bill: the local governments have an obligation to report any illegal activity of the illegal immigrants to the federal government. but that is not happening in your county anyway. so, already, based on the definition of that law it would appear, it would appear that you are not fulfilling your end of the bargain or your living up to the state of the law that has been in effect for 14 years. >> let me put it to you this way. here's what happened. if you're arrested in cook

county jail and your immigration status becomes an issue after your arrest you are definitely taken over to immigration. people are handed over every week from the county jail to the immigration department. bill: you are not saying they get a free pass. >> i don't believe they are. i can tell you for a fact there was a american citizen who lived in my district, 4th congressional district here in chicago, who, on a friday night, was handed -- told to stay in jail, was told to keep over the weekend in jail and he was, and on monday was released to immigration an immigration released him hwhen they found ot he was a citizen of the u.s., that was a fact, i had to intervene in the case of an american citizen who was being held and it gets complicated over identifying when the federal government has difficulty identifying who is here and isn't here legally. bill: why would you support a sanctuary city? >> why would i... i'm going to

tell you something. i think it is very, very important, when i enrolled my daughter, in school, she was enrolled in a classroom with children whose parents were undocumented. and there are 4 million in america and she was in high school, i remember that. when i go to church on sunday, i sit in the same pews with undocumented workers, when i go to local parks, they are an integral part of the community, in which i live. and, when a crime occurs, i wants to make sure they are going to come forward in order to be involved and in solving that crime including the... bill: as a politician there is a political equation in the. what would happen if the democratic congress in washington actually cracked down on sanctuary cities? what would be the effect? >> but, what -- here's... here's what i don't understand. the justice department says. they said arizona, you overstepped your boundaries. bill: we already talked about arizona. i'm talking about -- >> it's the federal government's responsibility to carry it out.

bill: i got it. we got all that. from a political standpoint, what would be the effect if there was a crack down on sanctuary cities, in america, starting today? >> explain to me, bill, exactly what it is you would like to see happen. bill: would it hurt you as a politician. would it hurt the party? yes or no. >> would it hurt the party? absolutely, i don't see why it would hurt the party. what i do think it would hurt is our ability to crack down on gangs and drug dealers and criminal elements in our community because we would lose, literally, there are 12 million undocumented workers, who live among us, they are integrated into the very fabric of our communities and our -- >> yes or no, would it hurt the party. >> i can't -- what i'm trying to say. martha: i don't think it matters. i think what matters is, the relationship between the police -- i haven't quite thought about the political canadians

consequences, i'm thicon-- consequences, i'm thinking out the safety consequences. bill: i wish i had 15 more minutes to talk, but i don't, thank you, luis gutierrez. thank you very much. juliet: union contracts, can we afford unions any more? that is coming up next. with ap we can fly out to see family. ♪ and we canook out more with friends. my card lets me work out more. ♪ and ours lets us eat out more. aarp helps us do our favorite thing. the new website is my favorite thing. [ female announcer ] with aarp you get so much more out of life. discover the best of what's next at the new aarp.org. that five-finger bond that communicates trust... honor... follow-through... and follow-up. it's a promise that says go ahead and buy a ram 1500

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juliet: welcome back, president obama made union friendly decision since taking office including giving labor unions first dibs on federal contracts but with ballooning pension and out of control wages can america afford more unions, james rosen is joining us live from washington. good to see you. >> reporter: good morning, president obama has undeniably had more success, reorienting the federal government toward a more pro union posture than he has had in reducing the number

of unemployed people in america, in his first days of his term a signed' voo a series of orders, beneficial to the unions, and one order mandated in federal construction contracts worth $25 million or more, contractors should give preference to project labor agreements. which set aside jobs for union workers. and, another of these executive orders required contractors with more than $100,000 in federal contracts to post workers' rights in workplaces and another, barred federal contractors from being reimbursed with federal funds, from money spent opposing union organizing efforts. more recently, the president placed craig becker as a recess appointee on the national labor relations board, a yale law graduate and former counsel to the service employees international union has advocated for the nrlb to enforce its own interpretations of labor laws and that appointment could help the unions achieve, despite congressional opposition one of the most cherished policy holds, the so-called card check

legislation which abolishes secret ballots in union elections and makes it easier to unionize, as you might have imagined what is good for unions is good for working people and good for job creation and we found others who disagree. >> during the period from 1947 to 1973, when unions were getting stronger and recommended more than a third of the workforce, that was a period of time where we had productivity growth and really wage growth and that was a good time and a prosperous time for america. >> the private sector... the rates have fallen enormously from, roughly, 25 or 28% of the workforce, in the late 1940s and early 1950s to 7 or 8% today. and when we are competing with not only businesses here in the u.s., but businesses in other countries, the process of unionization artificially raising wages makes us uncompetitive. >> reporter: the professor offers praise, however, for president obama's $12 billion initiative aimed at

strengthening community colleges, to get workers for education and training and help them be competitive that way, juliett. juliet: james rosen, thank you very much. bill: many parts of america struggling now with the economy, guess where the economy is booming? guess? we found out, we'll take you there in a moment here. juliet: and a blockbuster story on americans intelligence community, we'll talk to the lead writer on the story, live, coming up, the story is getting a lot of attention. a lot of heat. bill: a lot of buzz, too, and you want know stories generating though most buzz head to foxnews.com and click on the "most read" tab and see what is hot on monday. it is hot outside. we know that, checking our web cam, right now, on-line. [ mare leading sensitivity toothpaste,

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bill: waiting on the president, a mart of moments, the president will talk about the economy and we expect harsh words directed towards republicans in congress and the president expected to

call out republicans for blocking the extension of unemployment legislation, because of one big question, who pays for this? democrats say it is essential for the millions of unemployed and republicans say we cannot keep adding to the deficit, unless we figure out a way to keep it in check and pay for it. we are waiting on the president in that, more reaction in moments, 10:30 new york, a "fox news alert," a story that is going from washington all over the world, frankly. should our nation's top-secret intelligence community remain top-secret? a "washington post" investigation, two years in the making, just out today, that piece lays out shocking revelations about how large and complex our spy network has become, since 9/11. and the report claiming since september 11th, our spy network has become tangled and sprawling, a massive network with about 1200 governments intelligence agencies, and none, rather, not all of them looking at the same amount of information, dana priest from the "washington post" is with me now. good morning to you from

washington. >> nice to see you, bill. >> i want to get to the criticism in a moment. there is a lot of it and you expected that, too and the white house was notified about the story before it was in print, days or weeks in advance... >> a month. bill: a month in advance, okay, so your investigation and what you found, was... we know that community has grown since september 11th. there has been a purpose for that, to keep america safe, not just today, but tomorrow and into the future. and what surprised you about your investigation? >> well, a couple of things. one is the extent to which it grows. and people within the government don't even know exactly that the answer to that question. so, that is what we set out to do. we set out to sort of map and do like a genome project of people, organizations, and corporations that do top-secret work and we came up with, as you said, 1300 government organizations and another close to 2 percent corporations that do it, operating in 10,000 locations, across the u.s., and, more than

that, that there are significant redundancies and overlap in the types of things that these ine r organizations and they, themselves, don't coordinate that much themselves and when you have a lot of agencies doing the same work they don't know who else is doing the same work. bill: which is something that... after 9/11, which is still a hangover of the community, if you go back to the 9/11 commission and the hearings we watched and conclusion they made and we talked to michael schoyer, who worked with the cia in the usama bin laden unit and had a lot of reaction to the article, he says this is what you expect from teenagers when it comes to identifying the locations of u.s. intelligence facilities, across the country. he went onto say that there is no need to talk about these facilities, located at the schools or walmarts or civilian

facilities, he says, it weiill targeted by those who want to get them after they were identified. how do you defend against such a charge. >> he obviously has not been on the database, because we don't identify anything that he talks about, in our stories, we describe places, so that you can get a feel that we were there, but we don't say where they are in any specificity. so, you know, it is typical of people who would rather work in the darkness. i mean, no government bureaucracy, how well nejdinten it might be functions well without thorough oversight and prodding on the part of the public and the part of all of the various branches of government. the problem is when you talk about intelligence, it is difficult to do. and that is one of this basic roles we here at the "washington post" think our national security team should continue to do. but we are weighing, obviously, balancing, giving out too much information, and, not enough. so, in this case, in particular,

we spent months talking with the government and we spent more time... bill: two years among the reporting there, why was it necessary to give the white house a month's advance notice and when you say, two months, three months, 6 months? >> it is many months. and. bill: did they ask you to change anything? >> they had concerns and we took those concerns on board, and, our executive editor, marcus barkley, decided to make changes on his own after gathering their opinion and that is the proper way we do whenever we are dealing with sensitive information. it happens all the time. this time was quite extensivive because we gathered so much and didn't want to plop it down in front of them the day before it ran and gave them a lot of opportunity to give us feedback and asked specifics and they would not give us specifics. there was one agency that did, and we decided that they had a

good case and took what they were worried about away. bill: in a word then you are suggesting that there was good cooperation there, is that -- >> oh, yeah. i think so. bill: here's what i think people want to know. they'll read the article, and they'll either agree with putting out the information, and say this is putting national security at risk. that -- the debate to the side, i wants your answer in a moment but through all of your reporting, are we or not safer than we were nine years ago this fall. >> people -- it is immobile possible to make assessment, it has grown so big they cannot get a handle on the system, what is working, not working, duplicative, and what is working and what should stay and we have on the record interviews and those were not by secretary gates and leon panetta and they weren't saying you shouldn't have done this. they were quite curious about what we had done and as you read tomorrow, ina story about

contractors, secretary gates expresses his frustration at trying to get some of the information on his own, which is quite surprising. bill: one thing he said, in the early releases on the story, is that gates, the defense secretary, said, do we have more than we need? and all of that is to be evaluated, especially, given, well, what we have been through over the past two-and-a-half years. i have to go. appreciate your time, there is one fundamental question. i know you stand by your reporting, was it the responsible type of reporting in a post 9/11 world, you know and we all know there are people trying to kill americans every day. >> well, absolutely. we don't disclose locations of top-secret work. we talk about where it is being conducted. we don't go into what exactly it is and, again, if you read the article and go on the database you will see that for yourself. bill: dana priest from the "washington post," we will look for part two tomorrow and discuss it then. thank you for your time. >> thank you.

juliet: though though recession may be over the recovery across the country is slower than expected. but that is not the case, in washington. where times are booming in the capitol there, there are fsigns of economic distress and why there is a gap between the american people and washington, d.c.? michael goodwin, fox news contributor and "new york post" columnist. great to have you here. quickly, before we get into the questions, you were watching dana priest and this is your thing, you talk about this stuff, what is your reaction to that interview. >> well, look, i think that it is an important service the post has done in outlining just how big and vast this complex has become and the idea of disclosure, always an important one, it sounds as though they gave the white house and the security apparatus a chance to respond and pull them back, i would say, so far, so good. juliet: business is booming in d.c., not the way is across the country, how vast of a

difference are we talking about here. >> government is now a growth enterprise, under president obama and the democrats and we see it nationally and local alley in the states and cities as well, government pensions and government pay now far surpassing what people get for comparable jobs in the private sector and with the growth of government comes the growth of regulation and people move to washington and need a house and need to shop and, go to doctors and dentists -- juliet: having dinners and going to shows. >> and president obama said we'll cut down on the lobbyist profession in washington and we will not have them in the administration, in fact what you find is every new government regulation brings a host of lobbyists, and the problem is not every business on main street can afford a lobbyist, what you have is big business, having an unfair advantage, every time government picks winners and losers, the losers are going to be the little guy, because they will not have access or the money to buy the power. juliet: i want to read you something, politico did an

on-line poll, surveyed 1011 people nationally and compared those people's views to 227 people who live in the d.c. area, who would be considered d.c. elite. people making some money. >> sure. juliet: the regular folks, of the regular folks, 1011, 25% say the country is headed in the right direction. 25%. but, you narrow it down to the elite, and, the number of those who say the country is headed in the right direction jumps to 45%, are the numbers significant? what does it say. >> sure. it reflects the old line, a recession is when your neighbor loses his job and depression is when you lose yours, the elites in washington are not losing their jobs, they are doing well and it is a growth industry, they are having answers to the power, and are being paid and rewarded for that and the other side of the equation, the government power and spending and increasing its own payroll, government jobs are now popular, so, across the country when you have an economic downturn, having 7.5% of the private

sector jobs were lost in the recession and government payrolls have gone up everywhere, local and state. juliet: though it will leave those outside of the beltway, leave a sour taste in their mouth and those on the beltway, say that is not bad, at least some people are doing well. >> that is the problem, when the government has the power and the state grows it takes the power from somebody else. a dollar to the government is a dollar less in the private economy and a dollar that will not be spent locally and so you have an accumulation of power, in washington, in state capitals and that is the sort of thing that puts a chokehold on the economy and one reason why employers don't want to hire. i believe that the failure for -- of unemployment, the fact that we are not seeing new job creation, is very much owed to the growth of regulation, growth of taxes, which makes government bigger and better, or bigger anyway, not necessarily better

and shrinks the private economy. juliet: good to see you. bill: star attraction having a day in court, rod blagojevich getting set to defend himselfment what will he say on the stand? we'll talk about that. juliet: fun in the sun, the jersey shore taking a breather. why the cast of the hit show is rolling up their towels and putting away the tanning lotion. fiber one chewy bar.

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juliet: welcome back, as we reported earlier, the prosecution is wrapping up its case against former illinois governor rod blagojevich. brand new video showing him arriving in court, this is from this morning. did the prosecutors persuade the jury that blagojevich broke the law? or can he win them over and say it was all this political horse-trading? let's bring in our legal panel, stacy is a former prosecutor and, first of all, rod blagojevich says he'll take the stand and, you now, typically in situations like this, especially federal cases, they don't do this. and, you think it is a good

idea, stacy, pewe'll start with you. >> it is a prosecutor's dream to have a client like this going and taking the stand, he's so arrogant, we have seen him on tv calling news conferences and doesn't know when to shut up. he's a blabber mouth and he'll hang himself, you give someone enough rope when they take the stand they'll hang themselves and the prosecutors, i'm sure are ready, willing an able to take him on. juliet: i keep mentioning celebrity apprentice jokingty, b -- jokingly, and in all seriousness, when he was on the show and it may have been him crafting the defense, he couldn't use the e-mail, couldn't use the computer and couldn't type, the former governor and prosecutor, mind you and doesn't know how to use e-mail or text, do you think there was any doubt that he was building his defense on this one and stacy, we'll start with you again. >> i know he's crafty and i don't know if he was trying to build his defense but he's on

tape and quite frankly they don't need to cross him, he can take the stand and his attorney will put him on and he can try and talk his way out of the hole and the prosecutors will play the tape and say is that your voice, no double meaning to what you were saying, end of discussion, it is a prosecutor's dream to have a client who doesn't know when to shut up take the stand. juliet: randy, do you disagree. >> julie, he set up this defense and doctrine nated the jury and we have jurors -- ask jurors to bring common sense and life experiences into a courtroom and have the nerve to say, you know, you can't use someone's silence against them and that is not how we live our lives and we expect someone to speak up when they haven't done anything wrong and he'll take the stand and say, look, i'm an idiot. i say things i shouldn't say. i speak my mind. and that different mean i

intended to commit crimes or i intended to do any of these things and he'll look the jurors in the eyes and say, are you really going to convict me because, if you convict me you convict the entire political system. that is called jury nullification, it doesn't matter what they do, if you like him you will be persuaded. you need one guy. >> they will not like him. juliet: that's what i was going to say, you have seen him in action and he gladhands and is focused on everybody who comes up to him and he's good with the public and you know, will he be able to sway the jury, do you think, randy. >> i'll tell you, you read the blogs, read what people have to say about him, and not the experts, not the pundits but the men and women in the streets, and, at some level, they empathize with him, sympathize with him and see him as an idiot, and not as a criminal and he says things like james carry did in "liar, liar." and says what is on his mind and it doesn't make him a criminal. and i think there may be one person on that jury who says, you know what? if i can't indict all of the

politicians, and convict all of them, i'm not going to convict him. juliet: all right. on that note. >> that is totally wrong, i think they'll take down the big guy and that is what will happen. juliet: we'll see, he will be testifying, looks like, later on this week. thanks, both of you, for joining us, appreciate it. bill: not every day you get a reference to jim carrey and liar, liar. juliet: and have it refer to the former governor of the state of illinois. bill: a modern day robin hood, is not stealing money, he's relying on his luck instead. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years?

call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

bill: as expected, "fox news alert," news break in a matter

of seconds from the white house, president obama will come out, with comments about the economy, and we also expect him to blast republicans who he accuses of blocking unemployment benefits in congress and republicans have come back and said, for some time now, that if you figure out a way to pay for it we'll pass the legislation on the hill, but, we cannot keep spending, until we figure out a way to cut money in other areas. juliet: this is something that has been going on for a while now. the controversy over this, and the president will make his way down shortly and we'll of course bring you comments -- comments and remarks to you... bill: after a three-day weekend with the first family in the state of maine the president back at the white house, talking about the economy, we find poll after poll and survey after survey. the number one issue on minds of americans. juliet: you were sunning yourself on the beach while i was busy working on fox news channel -- >> you have a problem with that. juliet: absolutely not, i was thrilled to work, thank

goodness, for the job every day, but we'll take a quick break before we go there and go to rick leventhal. bill: i was waiting for you... juliet: you'll have to wait s. s bill: a modern day robin hood, the blackjack tables where he takes winnings and gives them to people who need a helping hand, rick leventhal has more. >> reporter: good morning to you, he normally finds people in need on his web site, robinhood702.com and submits video submissions from folks down on his luck and this time a fox station in las vegas alerted him to a family -- and more after the president. bill: president obama now. prechl >> president barack obama: across the country many americans are scanning the class finds sitting at the kitchen

table, updating resumes or sending out a job application, hoping this time they will hear back from a potential employer and are filled with a sense of uncertainty, about where their next paycheck will come from and i know the only thing that will help them and fully list the sense of uncertainty is this security of a new job. to that end, we all have to continue our efforts, to do everything in our power, to spur growth, and -- in hiring. i hope that the senate acts this week on a package of tax cuts and expanded lending for small businesses, where, most of america's jobs are created. we have a lot of work to do. to make sure that we are digging ourselves out of this tough economic hole that we have been in. but, even as we work to jump-start job growth in the

private sector, even as we work to get businesses hiring again, we also have another responsibility. to offer emergency assistance to people who desperately need it. americans who have been laid off in this recession. we have a responsibility to help them make ends meet and support their families, even as they are looking for another job. that is why it is so essential to pass the unemployment insurance extension that comes up for a vote tomorrow. we need to pass it, for men like jim... who is with me here today. jim worked as a parts manager at a honda dealership until about two years ago. he posted resumes everywhere. he has gone door-to-door, looking for jobs. but he has not gotten a single interview. he's trying to be strong for his two young kids.

but, now that he has exhausted his unemployment benefits, it is getting harder to do. we need to pass it for women like leslie, who lost her job at a fitness center last year and has been looking for work ever since. because she's eligible for only a few more weeks of unemployment, she's doing what she never thought she'd have to do, not at this point anyway, she is turning to her father for financial support. and we need to pass it for americans like denise gibson, who is laid off from a real estate agency earlier this year. denise has been interviewing for jobs but, so far, nothing has turned up. meanwhile, she is falling further and further behind on her rent, and her unemployment benefits are set to expire and she is worried about what the future holds. we need to pass it for all the americans who have not been able to find work in an economy where there are five applicants for every opening. we need emergency relief to help

them pay the rent and cover their utilities, and put food on the table while they are looking for another job. and for a long time, there has been a tradition, under both democratic and republican presidents, to offer relief to the unemployed. that was certainly the case under my predecessor, when republican senators voted several times to extend emergency unemployment benefits, but, right now, these benefits, benefits that are often the person's sole source of income while they are looking for work, are in jeopardy. and i have to say, after years of championing policies to turn a record surplus into a massive deficit the same people who didn't have any problems spending hundreds of billions of dollars on tax breaks for the wealthiest americans are saying we shouldn't offer relief to middle class americans like jim or leslie or denise who really need help. over the past few weeks a

majority of senators have tried. not once, not twice, but, three times. to extend emergency relief on a temporary basis. each time a partisans minority in the senate, has used parliamentary maneuvers to block a vote, denying millions of people who are out of work much-needed releft. -- relief. and these leaders in the senate who are advancing a misguided notion that emergency relief somehow discourages people from looking for a job should talk to these folks. that attitude, i think, reflects a lack of faith in the american people. because, the americans i hear from in letters and town hall meetings, americans like leslie, and jim and denise, they are not looking for a handout. they desperately want to work. just like now they can't find a job

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